Planet 13 to enter Florida via $55 million purchase of cannabis operator

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Las Vegas vertically integrated cannabis company Planet 13 Holdings agreed to purchase a Florida medical marijuana subsidiary of multistate operator Harvest Health & Recreation for $55 million.

The new company will be called Planet 13 Florida, according to a news release, and will be licensed to cultivate, process, transport and sell medical marijuana.

The company plans to build cultivation and retail in “priority metro areas,” including Miami, Orlando and other Florida tourist destinations.

As of Aug. 26, Florida was home to 22 companies with cannabis licenses with 371 dispensaries.

License holders can open as many retail locations and operate as many cultivation and processing facilities as they wish.

“Florida has long been one of our most coveted markets with over 20 million residents, 130 million annual visitors and incredible consumer demand already demonstrated in the medical program,” Larry Scheffler, co-CEO of Planet 13, said in the release.

“It was important for us to enter the market prior to a transition to adult-use to put the pieces in place to capitalize on this market in both the short and long term.”

The acquisition is subject to certain conditions, including:

  • The successful close of Florida-based Trulieve Cannabis’ acquisition of Harvest.
  • The state health department’s Office of Medical Marijuana Use approval for Planet 13 Florida to buy the Harvest license.

Arizona-based Harvest recently agreed to be acquired by Trulieve under a deal that was valued at $2.1 billion when it was announced in May.